Thu, Jul 25, 10:08 AM (44 days ago)
Greenlane Holdings, Inc. reported a significant decline in net sales for Q1 2024, down 79.4% to $4.9 million from $23.9 million in Q1 2023. This decline is attributed to a major restructuring of the Industrial Goods segment, transitioning from gross sales to a commission structure, and strategic shifts in the Consumer Goods segment to focus on higher-margin in-house brands. Cost of sales decreased by 81.5%, and gross margin improved to 30.7%. Operating expenses were reduced by 59.4%, driven by workforce reductions and cost-optimization efforts. Despite these measures, the company incurred a net loss of $4.5 million. Greenlane continues to face liquidity challenges, with substantial doubt about its ability to continue as a going concern through the next 12 months. The company is actively seeking additional capital and implementing strategic partnerships and operational efficiencies to improve its financial position.